Utilities incentivize curtailment of energy usage and energy production during certain high load periods to increase the ability of the utilities to meet a larger demand or to reduce production costs. For example, in summer months, peak energy usage may occur on hot days in the late afternoon. A utility may offer an incentive to a factory to reduce energy usage during the late afternoon. In response, the factory may delay a high load production run until later in the evening, turn down the air-conditioning in the factory, or otherwise reduce energy use. Similarly, the utility may incentivize an increase in energy production at external energy generation devices (e.g., photovoltaic (PV) panels) during the late afternoon to meet a load imposed on the utility during the late afternoon. In this manner, the utility may increase its ability to meet energy demands during the peak energy usage and/or avoid producing or purchasing additional energy to meet the energy demands.
The curtailment in energy usage during peak or high load periods may be referred to generally as demand response (DR). The energy usage curtailment during a specified time period may be referred to as a DR event. DR events generally occur when a utility expects a high demand and asks customers to reduce or curtail energy usage. When a customer reduces its energy usage by an agreed-upon amount, the utility may provide an incentive to the customer.
Some electrical distribution systems may include distributed energy production and centralized energy production. For instance, an electrical distribution system may include a utility such as a coal power plant and multiple houses that are fit with PV panels. The houses with PV panels are an example of site-level energy production. The distributed energy may be integrated into the electrical distribution system. Accordingly, a portion of energy produced by the PV panels may be introduced into and distributed via the electrical grid.
The electrical distribution systems may include multiple sites. Groups of the sites may be organized as a virtual power plant (VPP). For example, the sites that include energy production capabilities may be organized into a VPP. When grouped into the VPP energy production and energy use of the sites included in the VPP may be collectively managed.
The subject matter claimed herein is not limited to embodiments that solve any disadvantages or that operate only in environments such as those described above. Rather, this background is only provided to illustrate one example technology area where some embodiments described herein may be practiced.